How much safety inventory of cell should retailer carry

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Reference no: EM13224931

Weekly demand for Motorola cell phones at a retail store is normally distributed with a mean of 300 and a standard deviation of 200. Motorola takes two weeks to supply a retail order for these phones. The retailer is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should the retailer carry? What should its reorder point (ROP) be?

Reference no: EM13224931

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